Sunstone Hotel Investors Reaches Oversold Level; Dividend Potential Catches Attention
The DividendRank formula at Dividend Channel assesses thousands of dividend stocks, using a unique method to pinpoint those with both strong fundamentals and attractive valuations. Currently, Sunstone Hotel Investors Inc (Symbol: SHO) ranks above average, positioned in the top 50% of the coverage universe. This status indicates that SHO is a noteworthy option for investors looking to conduct further research.
Adding to its appeal, shares of Sunstone Hotel Investors entered oversold territory on Tuesday, trading as low as $10.285 per share. The Relative Strength Index (RSI), a momentum measurement tool ranging from zero to 100, defines oversold conditions. A stock is deemed oversold when its RSI drops below 30. For Sunstone, the RSI recorded at 28.1. In contrast, the average RSI for the dividend stocks tracked by Dividend Channel stands at 43.8. A decrease in stock price may benefit dividend investors by providing higher yields. Currently, SHO offers an annualized dividend of $0.36 per share, translating to an annual yield of 3.44% based on the recent share price of $10.46.
Investors with a bullish outlook might interpret the 28.1 RSI reading as a signal that the recent heavy selling may be tapering off, presenting buy opportunities. To further evaluate this stock, dividend investors should consider its dividend history, which plays a crucial role in predicting future payouts.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
